Economic power has shifted from the governments and companies of the USA and EU to those of the energy rich countries of the Middle East and Russia and of low cost Asian manufacturers and service providers. Military power could well follow and tensions could be exacerbated as groups with different beliefs and ideologies battle to control scarce resources. Traditional warfare between national armies is increasingly being replaced by, on the one hand, terrorist groups representing dissident groups and prepared to conduct suicide missions against civilian targets and, on the other hand, weaponry that is more powerful and can be more closely targeted. The spread of nuclear weaponry continues to be a major risk.

In the sections below, we list some of the key statistics and developments for the two years prior to December 2007. To see how this fits into our global outlook, we refer you to our World overview. For more recent information, we suggest you refer to the MBendi Blog: Signposts to 2020.

Africa is forecast to become a terrorist hotbed.

Europe's ageing population is going to lead to a shortage of young men for the military.

In October 2006, North Korea conducted a nuclear bomb test.

In October 2007, the US Congressional Budget Office forecast that the cost of the wars in Iraq, Afghanistan and against terror, could exceed US$ 2,400 billion in the next decade, of which 25% is interest.

In November 2007, the Russian parliament voted to suspend participation in the Conventional Forces in Europe Treaty.

In December 2007, Pakistan opposition party leader Benazir Bhutto was assassinated.

Footnote: If you are aware of any highlights we have missed, please contact us with details.